Training and retirement

Arbeitspapier

This paper presents results on the effect of formal life-long learning on the decision to retire early. Specifically, I estimate an Option Value model based on individual employer-employee longitudinal data including comprehensive government co-sponsored training records dating back more than 30 years. Human capital theory predicts that the amount of training and the length of working life will be positively correlated in order to recoup investment and yield a higher return. Significant upper bound effects of training in prolonging working life are found for certain types of training and certain groups of workers. However, out-of-sample simulations indicate that on average one year of training only adds up to one month to the career length. This means that training in itself is not enough to substantially prolong careers and increase the workforce.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6301

Classification and Topics

• Classification: Wirtschaft ; Social Security and Public Pensions ; Analysis of Education ; Retirement; Retirement Policies
• Subject: training ; retirement ; option value ; upper bound identification ; Lebenslanges Lernen ; Weiterbildung ; Altersgrenze ; Realoption ; Erwerbsverlauf ; Schätzung ; Dänemark

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kristensen, Nicolai
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/58614
• URN: urn:nbn:de:101:1-201204239412
• Last update: 10.03.2025, 11:41 AM CET